What happens if a Burros Fries franchisee purchases items from unapproved vendors?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
To insure the consistent high quality and uniformity of Products and Services provided by the Franchised Businesses, Franchisee must lease or purchase all products, supplies, kitchen equipment and services (as described above) for use in the operation of its Business, from us, our affiliates or approved vendors who demonstrate to our continuing satisfaction an ability to meet our standards and specifications.
We are not liable to Franchisee for any loss or damage, or deemed to be in breach of this Agreement, if we, our affiliates or approved vendors and/or suppliers cannot deliver, or cause to be delivered, Franchisee's order of products, supplies or kitchen equipment where such items are outof-stock or discontinued.
Franchisee is prohibited from purchasing or leasing products, supplies, kitchen equipment and services from unapproved vendors and/or suppliers who are not on our approved list without our written approval.
We shall approve or deny Franchisee's request, which approval is in our sole discretion, within thirty (30) days of receipt of Franchisee's written request.
Such approval or disapproval shall be made by email or any other form of written communication.
Failure of Franchisee to purchase such items from us, our affiliates or approved vendors and/or supplies and use such unapproved items in the operation of its Business may result in termination of this Agreement as specified in Section 23.C of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees must purchase products, supplies, kitchen equipment, and services from Burros Fries, its affiliates, or approved vendors. These vendors must demonstrate the ability to meet Burros Fries's standards and specifications. A franchisee is prohibited from purchasing or leasing these items from unapproved vendors without written approval from Burros Fries.
To request approval for an unapproved vendor, a Burros Fries franchisee must submit a written request. Burros Fries has the sole discretion to approve or deny this request within thirty days of receipt, communicating their decision via email or other written form. As a condition of approval, Burros Fries may require inspection of the vendor's facilities and testing of the proposed items, with the franchisee, vendor, or supplier bearing the costs of inspection and testing. Burros Fries is not liable for any damage to or the return of any sample during this process, and the franchisee may be responsible for a product, vendor, and equipment assessment fee.
If a Burros Fries franchisee fails to purchase items from approved vendors and uses unapproved items in their business operations, it may result in the termination of the Franchise Agreement, as specified in Section 23.C of the Agreement. Burros Fries also retains the right to reinspect the facilities and retest the products or kitchen equipment of any approved vendor, and can revoke approval if the vendor fails to continue meeting their standards. Burros Fries makes no warranties regarding any vendor equipment, products, or supplies.
This policy ensures uniformity and quality control across all Burros Fries locations, protecting the brand's reputation and standards. Prospective franchisees should carefully consider the implications of these requirements, including the potential costs and restrictions associated with vendor selection and the risk of termination for non-compliance.